Core Viewpoint - Shenzhen Mind Electronics Technology Co., Ltd. reported a decline in total operating revenue for the first half of 2025, primarily due to decreased income from non-core businesses, while certain segments like wafer foundry and design services showed growth [2][3]. Financial Summary - Total operating revenue for the first half of 2025 was CNY 130.0741 million, a decrease of CNY 30.8458 million or 19.17% year-on-year [2]. - Net profit attributable to shareholders was CNY 10.3182 million, influenced by gains from equity transfers and losses from certain subsidiaries [2]. Business Development Overview - Power semiconductor business at Guangxin Microelectronics is in a healthy expansion phase, with a monthly production capacity exceeding 20,000 wafers and ongoing product development [3]. - Guangwei Integration has seen revenue and gross margin growth supported by Guangxin Microelectronics' capacity, with new products being developed for the photovoltaic and automotive sectors [3]. - Chip Microtech has established partnerships with over 30 domestic semiconductor design companies, making progress in various manufacturing processes [3]. - Jingrui Electronics reported a 17.31% year-on-year increase in overall sales revenue, driven by growth in the sales of 6-inch epitaxial wafers [3]. AiDC Business Performance - The AiDC business maintained stable development and gross margins, contributing consistent cash flow despite a complex international environment [4]. - Over 60% of AiDC sales in the first half of 2025 were from overseas markets, focusing on BRICS countries and regions along the Belt and Road [4]. - Guangxin Microelectronics plans to stabilize monthly production at over 20,000 wafers, with future expansion expected to reach 100,000 wafers per month by late 2026 or early 2027 [4].

Financial Performance - In 2024, the company achieved revenue of CNY 409 million, an increase of CNY 9.93 million or 2.49% year-on-year [1] - The net profit attributable to shareholders was -CNY 113.92 million, a decrease of CNY 126.47 million or 1,007.28% year-on-year, primarily due to significant goodwill impairment [1] - In Q1 2025, the company reported revenue of CNY 53.98 million, a decrease of CNY 11.71 million or 17.82% year-on-year [3] - The net profit attributable to shareholders in Q1 2025 was CNY 33.47 million, an increase of CNY 33.27 million or 16,299.56% year-on-year [3] Goodwill Impairment and Investment Losses - The company recognized a total goodwill impairment of CNY 81.98 million in 2024 due to acquisitions [1] - The long-term equity investment income was -CNY 71 million, influenced by the performance of three associated power semiconductor companies [1][2] Business Development - The barcode recognition equipment business achieved over 20% growth compared to the previous year, marking the best performance since the company's establishment [2] - The AiDC business saw over 20% growth in 2024, contributing stable cash flow and expected to remain a key revenue source [12] Semiconductor Business Progress - The company has established a complete power semiconductor industry chain, including wafer materials, wafer foundry, special process foundry, and chip design [5][6] - The wafer foundry, Guangxin Microelectronics, is in a ramp-up phase, with production capacity gradually increasing [7] - Guangwei Integration's revenue is expected to improve as it completes customer validations and benefits from Guangxin Microelectronics' capacity release [8] Market and Policy Impact - The company has not been significantly affected by the US-China tariff policies regarding semiconductor equipment procurement and product exports [15] - The focus remains on domestic customers for power semiconductor products, minimizing the impact of international trade policies [15] Future Outlook - Guangxin Microelectronics aims to achieve positive cash flow and net profit in the coming year as production capacity increases [7] - The company plans to expand its product offerings in the semiconductor materials market, particularly in high-value products [11]